Unless you are a seasoned camper and road tripper, option #1 is the best plan. A few things to consider:

Is this your first burn? If so, chances are it will take you hours longer to pack than you anticipate. You must also factor in stops along the way to get your final provisions. Combined with the wait at the gate, this all adds up to a long haul. In that case it's a much better option to pace yourself and stay in Reno Sunday night.

Are you driving alone or with others? If you can switch drivers, your plan to drive straight from SF is definitely more feasible. However, packing and stocking supplies can get complicated with more people and can delay your departure time and prolong your stops along the way.

On a Sunday, traffic to Reno from SF should not be a problem unless there is a wreck or wildfire or something like that. It's freeways the whole way. Once you leave I-80 in Wadsworth you will get stuck behind a slow vehicle, but traffic generally moves at a steady pace. Just kick back and get excited at that point.

The drive from SF is normally around 6 hours, but you'll likely encounter some construction and depending on time of day you'll hit traffic in Sacramento and Reno. Anticipate an 8 hour wait at the gate. If you're lucky it may be as little as 4-5 hours, but plan for 8. Besides, with the reports of heavy dust storms there may be periods where the gates are closed (if the roads aren't safe to travel, they won't let people through).